How much is too much to pay on rent?

Some people in this city pay over double that in rent and more. That is because it is expensive here.

So if you feel you can afford it, then go ahead. Frankly for a one bedroom rental (I assume it is), I hope it is really special and the neighborhood rocks!

what you make is irrevelant, but let look at that first. 30% to 50% of most peoples income is spent on housing in new york. 200k = 110K keep, 30%-50% = $2750-$4583/ month. So you are in range. finding 30% is very hard. now the real question is what would the carry be if you were to own. on 1mm w/ carry, you total cost would be $4000 interst plus $1500 for a total of $5500. lets say after tax you total is $3800. to close on that apartment is $50k. to break even with closing costs, you would need to own for 5 years. that's with zero upside in the real estate market. you also need 200k to put down on the apartment. if you have less money, all carry cost are higher. 6000 per month - and deductions you might get. today, it is cheaper to rent in my opinion, but if you have time and a 1 bedroom is big enough, it is worth looking at the risk. i took the risk 5 years ago, i got squeezed on rates a took a huge profit. i need a two bedroom, but can not afford one. its worth laying out some cash for a larger apartment which will be more liquid in years to come. $1million bedrooms could have a lot of down side risk within 5 years. with real estate, time is always on your side. so if you going to be here a while, could be an option. btw...buying is within range too. morgage broker can lend 3x to 5x your salary. so getting a loan should be easy if you do not have any debt.

continued.....i forgot to mention that you should speak to an accountant. all deductions are not very clear today. ask about AMT. most people with your income range do not get deductions for RE tax. you AMT affect should be at least 5k per year again you.

You might try some furnished short term rentals that you find on craigslist.org

We weren't even new to the city - just tried Florida for a few years and wanted to come back.

We did 4 sublets in 4 different neighborhoods to find out where we like to live best. It was less expensive, we didn't get into big lease and big money deposit, had relatively easy moves, and didn't pay any brokers. You might have to look at few things before you decide, but you'd probably do that anyway.

After 18 months, we have a much better idea of where we'd like to be when we do buy an apartment.

Thanks for your thoughtful responses. #3, how could I get away with only $4k/month in interest. If I put down 10%, on $900K principal, I'd think I'm looking at something like 6.5% interest annually (at least), which would be like $4900/month. Or am I missing a cheaper way to do this.

#2, it is a 1 BR in a high-priced neighborhood. Though, it's not spectacular (doesn't have amazing views or super high end finishes). It is large though.

I think I'm moslty not ready for the financial risk of buying right now, or to be tied to a location for several years in case I want to move.

Could you give the area it's located in. For example if it's a brand new building in Tribeca than I can understand the 4100/per month charge.

$4100 is over the top. When you think about it in Manhattan how much time do you spend in your apartment. Between work, socializing, etc. you probably can find a one bedroom for $3100 and have the additional $1k to spend on fun.

I agree with #5...i'm in the process of doing the same thing returning to NY and not ready to buy..it's better to try short term rentals.

I make almost 300K and pay 2500 in rent and I think thats too high. 4100 in rent on a 200K salary is too high if you intend to save any considerable amount of money.

I think if you want a doorman and elevator building expect to pay at least 3000 for a one bedroom in a good area. There is the right way or the wrong way to live in the city. To me living in a five floor walk up building in a crappy area is not the right way.

"good area"? newsflash-- the entire island is now a "good area" and if you want to pay $3800 to live at Avalon Bay cause they have a pool table in the basement, go right ahead, i'll take the $1200+ discount to go sans doorman and invest the difference.

OP here. I am looking for a doorman, elevator, good neighborhood, close to subways. I also prefer to have a dining alcove. #8, I wish that was $3100. Where are you thinking that I could find a 1BR with dining alcove in a doorman building, good neighborhood, within a 3 minute walk to subways for $3100?

Op--are you a woman? I'm guessing yes, based on the doorman fixation. Doormen are really useless, IMHO, you can get a Mailboxes, etc., or USPS to take your packages, or just have them shipped to work. Most rentals w/o doormen have on-site supers to take your packages anyway. If its the prestige factor, know this--it adds at least $500 per month to your rent and 200K in this town ain't a lot. if you'll be going out on the town with any frequency, cabbing it, and/or travelling, summering, etc, you'll be left with diddly at the end of the day. If you're a "work hard, play hard" type, then fine. happy spending. if you're smart, you can do this town on the cheap.

look at the Saranac on Worth. run by manhattan skyline management. last time I checked, 1 BRs were 2895 and it has a doorman, all the frills, close to subways, blah blah.

The 2 rockrose buildings in north battery park city (41 and 22 river terrace) May have nice size 1 beds if you are willing to forego the river view (there are no BAD outlooks in these buildings) I have a large 1 bed with a river view that I pay 3435 for so extrapolating from that the low 3's should be the price for the back park view.

I think I would feel 1000% safer with a doorman. Particularly coming home at night.Who the heck wants to fumble with their keys at 3 in the morning. Never ever would I even consider buying or renting without a doorman.

have news for you, many if not most "doorman" building do not actually have a guy opening a door for you, rather they have an interior doorman/concierge who is most likely sleeping on the job at 3 AM.

#18 - Great point! Your wisdom is vast and sharp like a blade..oh generous one! It's like having a dog keep watch at 3AM...it'll be sleeping and passing gas too!

I don't know about a dining alcove but you can DEFINITELY find a one bedroom/doorman, etc. for $3,100. You can bite the bullet and call a realtor explaining exactly what you want and let them do the leg work. GOOD LUCK

I would rather not have a doorman. I would rather have a locked doorm/intercom system.

not me I'd rather come into a lobby with a doorman rather than an empty hall

Having additional cash will allow you to cab it. Anyway, $200k before taxes is not as much as you think..Have your accountant look at the taxes in New York.

I would never rent from a condo/co-op owner. Why should you pay someone's mortgage. There are many rental bldgs. that are great.

The rockrose buildings on river terrace have an onsite office. pretty sure the number is 212 217 2111

#24 - what are you, retarded? "...Why pay someone else's mortgage?..." What do you think you're doing in rental building, genius? THE SAME DAMN THING! Just on a larger, more impersonal scale. If the location is right, and the place is great, and the building you're renting in has all the bells and whistles you think you want, what does it matter WHO'S mortgage you're paying? That's the privilige of being a bitter renter - you're ALWAYS paying someone else's rent!

# 24 isn't that a stupid statement. If you rent from a rental building you too are paying off the mortgage the owner has on the buiding.

#24 is a huge idiot. Probably the same schmuck who demands there be a doorman, probably leases her Z3 and pays retail.

I guess it depends what you mean by "good area". If you're just concerned about being in an area that's safe, then sure. But, if you're looking to be in a well-established neighborhood, with all the things that go with it, like good restaurants, places to shop, and high end supermarkets (think whole foods, citarella, fairway, etc.) and excellent specialty shops for meets, cheeses, etc., then it does seem to limit things a bit more.

$4000 was based at 6% for 800k. I mentioned that 900k would be higher.

It's all personal preference, but sounds like OP is looking for a junior four, not just a 1BR.

Heh heh. Too bad, matsonjones. Didn't see the new "Anonymous" feature, didja? I knew the incessant, insane "bitter renter" ramblings the past few months were you. Tell us again about your FSBO, matsonjones. Tell us some more about art, matsonjones. Tell us more about your depreciating asset in "!!!PRIME VILLAGE!!!!," matsonjones. The Little Black Arrows fly for thee, matsonjones. How embarrassing.

Glenwood is a good rental co.

This is the thread where matsonjones forget to tick the anonymous box. Ouch. Notice any similarities between this and any number of foam-at-the-mouth posts of the past few months? Nice self-outing, dork.

4k is way too much to spend if you're making 200k. My partner and I make about 400k and pay a total of 2400 on rent. Think what you could do with that extra 2k/month!

Poster #35 here again - to clarify we each make about as much as you, but individually spend 1200/month in rent.

Guaranteed OP is a newly minted attorney who thinks she will be making alot. I see it all the time. first year attys making 160 plus stub bonus walk around with designer bags and shit, living in high rent apartments. 6 years in they still haven't bought a place and have like 20K in the bank. you cannot reason with spenders.

#35/6-- do you mean that you and your "partner" share a 2500 rent or do you somehow individually have $1200 apartments? thinking the former cause the latter like the tooth fairy and gay marriage dont exist.

OP here. Would love some more commentary from people who say it's too much to spend on rent. A few specific questions:
1) what do you think would be an appropriate amount to spend? Why?
2) Assume the goals of a) being in a great neighborhood within a very close walk (<5 min) to high-end groceries and subway, b) living in a doorman building, and c) having a dining alcove. Is there a way to do this more inexpensively?

To the people spending $2500 or so, what sort of place are you living in? I'm trying to get a sense of the quality of life tradeoffs that come with lower costs.

Thanks!

A large chunk seems to have gotten cut out of the middle of my last post. I'll repost...

OP here. Would love some more commentary from people who say it's too much to spend on rent. A few specific questions:
1) what do you think would be an appropriate amount to spend? Why?
2) Assume the goals of a) being in a great neighborhood within a very close (<5 min) walk to high-end groceries and subaway, b)having a doorman, and c) having a dining alcove. Is there a cheaper way to do this?

For the people who are paying $2500 or so, could you describe your apartments and how they fare with respect to the goals I have for a place? I'm trying to get a sense of the quality of life tradeoffs that come with lower rental costs.

Thanks!

A large chunk seems to have gotten cut out of the middle of my last post. I'll repost...

OP here. Would love some more commentary from people who say it's too much to spend on rent. A few specific questions:
1) what do you think would be an appropriate amount to spend? Why?
2) Assume the goals of a) being in a great neighborhood within a very close walk (under 5 minutes) to high-end groceries and subway, b) having a doorman, and c) having a dining alcove. Is there a less expensive way to do this?

Sorry for the multiple posts - for whatever reason, my post was getting cut off. Final question:
3) for the people paying $2500/month, could you please describe your apartment and the extent to which it would meet the goals I have for my own living space? I'm trying to get a sense of the quality of life tradeofss that come with lower rental costs.

Thanks, all, for your thoughts.

2500 in rent is for a walk up. 4000 is fair for rent. 200k is enough.

I repeat I think OP is looking at a 4000 junior four... which is likely significantly bigger and different then your 2500 walk up.

I don't think that the OP is looking at a junior 4, as she says that comparable apartments (in the condo building she is mentioning) are selling for a million dollars. That seems low for a junior 4 condo in a good area.
OP--You can get a fine sized 1 bedroom for 3500, but not 2500. With your criteria you need to spend at least in the 3's, and yes 200,000 is enough even to pay 4,000. However, NY is expensive in all respects and if you can get something for 3400 or 3500 that would be better. Rental buildins will often be less that condo rentals--at least less than recent condo conversions.

In a "good neighborhood" (UWS, UES, prime downtown), rent is $6 per square foot per month, so your $4,100 rent only gets you just under 700 square feet. Buy you can get rent for just $2 per square foot per month (or $1,400 per month for 700 square feet) if you are willing to move to a close-in off-prime neighborhood like Harlem, Hoboken, Long Island City, Astoria, Williamsburg, Fort Greene. Why waste your money on rent? If you spend $4,100 per month, that is $49,200 per year of after-tax income, which is close to $100,000 of pre-tax income. Basically, your $200,000 annual income isn't very much here. Move back to Kansas -- you get more bank for your buck.

But in Kansas, you'll be lucky to pull half of 200k

Thanks all. I think this confirms the $4100 apartment is the way to go if I'm going to get everything that I want. I think it's funny that people seem to be so judgmental about how I decide to allocate my income. I mean, I can understand why people who may pay less rent would prefer to allocate more of their money to savings, fancy dinners, whatever makes them happy. It's odd to me that they can't seem to understand why I'd rather live in a prime neighborhood, not walk very far to the subway, have a doorman, etc.

44 here.
#45, see post #13. Dining alcove = junior four.

Yes its a lot to pay for rent, but it's probably not "outrageous" if its in a good neighborhood and truly big for manhattan. Some people are married or w/ kids.

Having a Doorman isnt just about someone to take your packages or holding the door for you late at night. What if you lose your keys?

How easy is it for someone to get into your building without a doorman, just ring a few buzzers and someone is going to let you in!!!

What happens when there is nobody to keep the rifraf out, especially late at night ( and i'm not talking about the menu guy )

Anyone who lives in a non doorman building is cheap,cheap cheap.

OP here the place I am looking to live is in Tribeca